Students walk toward Centennial Common on April 18, 2018. Photo by Adam Glanzman/Northeastern University

Moody’s Investors Service announced on Wednesday that it has upgraded Northeastern’s bond rating from A2 to A1, with a “stable” outlook. Moody’s highlighted the university’s strengthening brand, increased enrollment and improved selectivity, track record of operating surpluses, and expanded research enterprise.

“Northeastern University’s (A1 stable) very good credit quality reflects a strengthening market profile and ongoing revenue growth and operating surpluses, supporting both investment in plant and financial reserves,” Moody’s said in a statement Wednesday. “As a large comprehensive urban university with a growing research enterprise, Northeastern has successfully increased enrollment, a key driver of revenue growth, and improved selectivity without relying on increased tuition discounting.”

The upgrade comes as two of the three global credit rating agencies, Moody’s and Standard & Poor’s, have lowered the overall outlook for higher education institutions from stable to negative.

“This upgrade is much more than a positive financial result,” said Thomas Nedell, senior vice president for finance and treasurer. “The credit rating process is important because it represents a third-party validation of the university’s strategy and execution across many dimensions.”